Brazilian (and LatAm) ERP market leader, Totvs, has invested $16m to take a minority stake in San Francisco-headquartered 'big data' business intelligence SaaS firm GoodData, through its VC arm, Totvs Ventures. Totvs led the $22m Series D funding round, which also included joint-investors Andreessen Horowitz, General Catalyst, Tenaya Capital and Next World Capital. Totvs' stake gives it exclusive distribution of GoodData solutions in Latin America; meanwhile GoodData gains access to the LatAm market through Totvs' distribution channels. GoodData was founded in 2007 and has so far raised over $75m in venture funding.
This looks like a smart move for Totvs from a 'directional' point of view, but is unlikely to solve the tactical challenge of Totvs' declining new licence revenues (see here). Neither will it contribute much to Totvs' international aspirations; its revenues outside of LatAm represented under 2% of the R$1.4bn total last year (see here). The real beneficiary though should be GoodData, which will now have the backing of the region's best known indigenous software firm with which to establish its credentials.